Risk vs Reward, helping hand with a Land Contract

[Jason Hill]

Ok so here’s the deal...

A high school friend of mine down on his luck (stroke victim, divorce, health issues, etc) is nearing achievement of obtaining disability due to health issues. He owes 10k on a land contract for his ~$70k home, is nearing delinquency and is desperate for help. He has sold off nearly all of his belongings of any value and is at the end of his rope. He’s offering a $10k price tag on the home, suggests that we would own the home, and once he gets his disability, would buy back the house for $13,500. Then if he is unable to repay (undefined term) the house is ours. Certainly I want to help him out but I don’t want to get bit either.

Now I’ve not seen his current contract yet, as I don’t want to give him a false hope by asking questions. I’m hoping to get some advice on this matter so that I can avoid blindness to potential risks and to be able to ask the proper questions (of him and the current note holder).

Thanks in advance for any advice.

Thanks so much.

[Brian Van Pelt]

Walk away, Keep the friend. With everything going on with him, there is a big probability that he will fall behind again and you may face the real probability of evicting a disabled stroke victim who is a friend. If you have the funds offer to hold a private note (mortgage) paying off the current note holder. I'm in agreement with Mike S